The BTC price is close to $40K as the Bitcoin trader’s eyes return to the highs
On December 3, Bitcoin (BTC) neared the $40,000 mark, reinforcing “strong” growth after the weekend's gains.
Bitcoin leaves $60 million in shorts.
Data from Cointelegraph Markets Pro and TradingView tracked a new BTC price rally, pushing BTC/USD to a new 2023 high of $39,730.
They built on the upward momentum entered a few days ago as Bitcoin hit $39,000 for the first time since mid-2022.
With derivatives heading into the weekend of Wall Street trading, analysts argued that spot buyers should step up to maintain momentum. Events eventually took an unexpected turn, with a rapid rally in Bitcoin and altcoins clearing earlier resistance.
In part on X's (formerly Twitter) coverage, noted trader Skew pointed out that “someone has run across the board by looking all shorts on most pairs.”
This in turn put BTC price behavior in the weekly open area in question – CME Bitcoin futures closed the week at $39,225, leaving a gap between that and the spot price, which would normally be “filled” by dips.
Analyzing the current situation, the partner trader Daan Crypto Trades predicted that this time will be different.
“Anytime $BTC is trading in a strong trend (up or down) and especially when it is trading at yearly highs or price gains. You want to have activities that go out on these weekends and leave a lot of people behind. It creates a gap that often doesn't close or weeks later,” explained the body of X's post.
“In strongly trending environments, trading CME prices no longer has a very strong edge. It's amazing when it's cut sideways, but not like this. “
Daan CryptoTrades agreed that the area around Friday's closing price provided an opportunity to “fish” the shorts.
“I didn't share the usual CME chart, thinking it was more likely to see a big move over the weekend. So far, his suspicions have been justified and those who tried to short-circuit this move would have been right,” he wrote.
Data from Statistics Resource CoinGlass showed around $30 million in BTC shorts released on December 1st and December 2nd.
BTC Price in “All-Way-UP Mode”
With $40,000 in sight, market participants turned their attention to bearish signals on longer timeframes.
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According to popular Twitter analyst Alan Tardigrade, BTC/USD was outside the active downtrend channel from the November 2021 all-time high of $69,000.
“Bitcoin has entered all-the-way-UP mode,” he commented on a recent chart showing how BTC's price action has broken out of the trend.
Fellow analyst BitQuant, known for its bullishness on Bitcoin in the current environment, was eyeing a return to highs before “some correction”.
Both views have characterized previous Bitcoin bull markets.
Yes, to previous all-time highs and then some correction to give the bears some hope https://t.co/2ovCs4mvGi
— BitQuant (@BitQua) December 3, 2023
Back in September, BitQuant made a bold prediction that BTC/USD would beat its peak subsidies before the next block subsidy halving in April 2024 – just four months away.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
